ing brighter.
Kodak Earns $92 Million in the Fourth Quarter on Sales of $3.220 Billion; Fourth-Quarter Digital Revenue Grows by 15%
Company Exceeds Full-Year Cash and Digital Revenue Goals; Achieves Digital and Overall EFO Targets; Sales of Consumer Inkjet Printers Exceed Company’s 2007 Goal of 500,000 Units
ROCHESTER, N.Y., Jan. 30 — Eastman Kodak Company (NYSE:EK) today reported fourth-quarter earnings from continuing operations of $92 million, or $0.31 per share, on higher year-over-year revenues, reflecting the emergence of a new, more profitable company.
Kodak also met or exceeded all of its key financial commitments and strategic goals for 2007, most notably:
Delivering an 8% increase in digital revenue
Achieving digital earnings of $176 million
Net Cash Generation of $333 million
On a GAAP basis, for the total year, revenue declined by 3% and cash provided by operating activities from continuing operations was $352 million
Aggressive entrance into new markets and product categories, including the introduction of the KODAK All-in-One Inkjet Printing System, KODAK digital picture frames, KODAK InSite enterprise management software, and the KODAK NEXPRESS S3000 Digital Production Color Press
Completion of the company’s four-year corporate restructuring program
Achieving targeted cost model for the year and reducing full-year Selling, General and Administrative costs from 18.5% to 17.1% of revenue
“I am thrilled with our 2007 performance, as it is powerful evidence that a new Kodak has emerged and is producing solid, value-creating growth,” said Antonio M. Perez, Chairman and Chief Executive Officer, Eastman Kodak Company. “We delivered another strong quarter, and another strong year of earnings growth, and met or exceeded every important goal that we set for ourselves.
“In addition, we successfully entered the $50 billion consumer inkjet market and exceeded our first-year printer sales goal. What’s more, third-party data indicates that Kodak is enjoying a 30% price premium over the industry average. Clearly, our value proposition is resonating with consumers and they are willing to pay a bit more for a Kodak printer because they know they will save money every time they print. Consumer inkjet is just one of several new product introductions that are receiving positive customer response. The more I see of them, the more optimistic I am about their success.”
Kodak’s digital revenue grew 15% in the fourth quarter of 2007, driven by strong year-over-year increases in all key digital businesses, partially offset by a decline in snapshot printing.
